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AlekseyPX
3 years ago
5

For an investment to be classified as a current​ asset, A. the investment must be easily convertible to cash. B. the investor mu

st intend to convert the investment to cash within one year or current operating​ cycle, whichever is​ longer, or use it to pay a current liability. C. both a and b must be met for the investment to be classified as a current asset. D. neither a or b are relevant to the classification of an investment as a current asset.
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer:

<h2>For an investment to be considered as current asset,it has to be convertible into cash and within one year of business operation or current operating cycle,whichever is longer.Hence,the correct answer is option C.</h2>

Explanation:

In Business Studies or Accounting,current assets are identified as those assets which are normally convertible into cash value usually within 1 year of business operation and used to pay any current liability.Therefore,any short term investment in business which can be used or utilized during the regular business operation and converted into cash value within one year of operation can be termed as current assets.Therefore,to satisfy the conditions to qualify as current asset,any business investment has to be cash convertible which has to be conducted within one year of operation or the operating cycle,depending on their duration.

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Answer:

The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:

$486,000.

Explanation:

a) Data and Calculations:

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b) There is no goodwill arising from the investment in Satisfactory.  The equity method will be used to account for the investment in the Satisfactory.  The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.

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2 years ago
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elena-s [515]
<h3>Question:</h3>

•explain six Differences between private and public company.

Answer:

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Explanation:

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